Lawsuit alleges Medicare fraud, kickbacks

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Posted: Saturday, January 4, 2014 7:57 am | Updated: 7:58 am, Sat Jan 4, 2014.

Davis Regional and Lake Norman Regional medical centers, and their owner, Naples, Fla.-based Health Management Associates (HMA), are being sued for allegedly offering kickbacks to doctors to cooperate with a system that ordered unnecessary tests and admitted patients who did not need the care in an effort to raise corporate profits, according to a lawsuit unsealed by the U.S. District Court in Charlotte this month.

The “whistleblower" lawsuit, which was originally filed in 2010 by the former medical directors of Davis Regional and Lake Norman Regional’s emergency departments (EDs), was unsealed after the U.S. Department of Justice decided to join the suit. The Justice Department is also involved with lawsuits against HMA for the same reasons in at least five other states.

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